Latest News on Dividend and Preferred Stocks

Shaking Up the Blended Income Portfolio

When we last wrote on January 6th we said that we would be primarily purchasing short and medium duration securities in the Blended Income Portfolio in 2017.  With this theme in mind we have added 700 shares of Medley LLC 6.875% Senior Notes (NYSE:MDLX) to the portfolio today. Medley LLC is the operating company of Medley […]

Fixed Income Investors Drive Interest Rates Lower

Fixed income investors are thumbing their noses at the idea that interest rates are going to move higher because of the strength of the global and U.S. economy.  Today the 10 year treasury fell by 8 basis points to close around 2.36% after hitting 2.6% last month as the Fed moved the fed funds rate […]

2016, A Good Year

Investors have all kinds of goals for their portfolios, some realistic, some not, which is why we strive to define our goals based upon an investment style that suits our needs and temperment.  We have made 7% our goal for the last 3 years and generally have been successful–so why not leave it at 7% […]

Added Saratoga Investment Notes to Portfolios

We have added the new Saratoga Investment Corp 6.75% notes (NYSE:SAB) to the Blended Income Portfolio and to the Moderate Duration Income with Zip Portfolio. While we would prefer to have a bit higher coupon on our purchases these notes fit the requirments of some of our portfolios which demand we hold just short/medium duration […]

Business Development Company Saratoga Investment Corp. Sells a New Baby Bond

Saratoga Investment (NYSE:SAR), a smaller sized BDC, with assets under management of just $272 million, has sold a new baby bond issue in a refinancing transaction.  The new bond has a coupon of 6.75% and a maturity date of 12/30/2023 making it a relatively short duration security. The new issue from Saratoga is $65 million […]

We Make Portfolio Changes

We have been very happy with the Short/Medium Duration Income Portfolio and the Short/Medium Duration with Zip Portfolio this year while we have been less than happy with the Blended Income Portfolio so we have started to make some portfolio moves to try to help the portfolio perform a bit better. 1st off we bought 500 shares […]

Interest Rates Tic Higher While Panic is Averted

Well as we expected the announcement of a 1/4% Fed funds rate increase turned out to be mostly a non event, although over the course of a day and a half the 10 year treasury has moved around in a 10 basis point range caused by the Fed’s more aggressive statements relative to 2017.  Yellen’s […]

Miracles Happen – First BanCorp Restarts Preferred Dividends

In what we term a “miracle” First BanCorp (NYSE:FBP) of Puerto Rico has restarted the monthly dividends on their monthly income preferreds with the first payment to be made on 12/30/2016.  After the market close Monday the company declared a dividend to be paid on all 5 preferred issues outstanding. It should be noted that […]

Staring at a Rate Increase

So here we are just 46 hours before the Fed likely announces a fed funds rate hike of 1/4%.  We will be plenty happy when they get this out of the way so we can move ahead.  It would be a shock if the Fed did not raise rates as everyone is fully expecting a […]

Bank Holding Company KeyCorp Sells a Fixed-to-Floating Preferred

$135 billion asset bank holding company KeyCorp has sold a new fixed-to-floating rate preferred with a still stingy initial coupon of 6.125%.  Obviously the company is working for the common shareholders and want to hold the rate as low as possible, but in the face of rising interest rates this initial rate is really a […]

When You’re Snoozing, You’re Losing Income

We have written before that when you are not invested you are cutting your income stream.  When we write these things we include ourselves in those that unnecessarily lose income to what really amounts to laziness (or maybe we are distracted–that sounds better). Today a reader sent a note and asked why we didn’t add […]

Sharply Higher Interest Rates – What Now?

It has been almost 3 weeks since Donald Trump won the presidential race and we have been through plenty of pain in the income investing arena since that time.  Honestly I believe this was simply a knee jerk reaction without any basis in fact–darn little has changed in fundamentals and future economic change is likely […]